Correlation Between Woori Technology and Kosdaq Composite
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By analyzing existing cross correlation between Woori Technology Investment and Kosdaq Composite Index, you can compare the effects of market volatilities on Woori Technology and Kosdaq Composite and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Woori Technology with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Kosdaq Composite.
Diversification Opportunities for Woori Technology and Kosdaq Composite
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Kosdaq is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Kosdaq Composite Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kosdaq Composite Index and Woori Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Woori Technology Investment are associated (or correlated) with Kosdaq Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kosdaq Composite Index has no effect on the direction of Woori Technology i.e., Woori Technology and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Woori Technology and Kosdaq Composite
Assuming the 90 days trading horizon Woori Technology is expected to generate 1.83 times less return on investment than Kosdaq Composite. In addition to that, Woori Technology is 2.2 times more volatile than Kosdaq Composite Index. It trades about 0.1 of its total potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.41 per unit of volatility. If you would invest 62,701 in Kosdaq Composite Index on October 9, 2024 and sell it today you would earn a total of 9,095 from holding Kosdaq Composite Index or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. Kosdaq Composite Index
Performance |
| Timeline |
Woori Technology and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Woori Technology Investment
Pair trading matchups for Woori Technology
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Woori Technology and Kosdaq Composite
The main advantage of trading using opposite Woori Technology and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Kosdaq Composite can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kosdaq Composite will offset losses from the drop in Kosdaq Composite's long position.| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
| Kosdaq Composite vs. Shinhan Inverse Copper | Kosdaq Composite vs. Hanjoo Light Metal | Kosdaq Composite vs. Coloray International Investment | Kosdaq Composite vs. EBEST Investment Securities |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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